https://www.taxtmi.com/caselaws?id=164557 A by-product arising only incidentally from manufacture of an exempt main product takes the same exempt character unless the department proves an independent taxable manufacture by reliable evidence. Tax cannot be imposed on assumptions that production was through an expeller or that diesel was used where the record contains no supporting material. Non-maintenance of a manufacturing register does not, by itself, justify an adverse inference or supply the missing factual basis for levy when the main product is exempt. The stated principle is that fiscal liability must rest on evidence, not conjecture or presumption. en-us Tue, 05 Jan 2010 00:00:00 +0530 Sat, 18 Oct 2014 13:39:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=164557 A by-product arising only incidentally from manufacture of an exempt main product takes the same exempt character unless the department proves an independent taxable manufacture by reliable evidence. Tax cannot be imposed on assumptions that production was through an expeller or that diesel was used where the record contains no supporting material. Non-maintenance of a manufacturing register does not, by itself, justify an adverse inference or supply the missing factual basis for levy when the main product is exempt. The stated principle is that fiscal liability must rest on evidence, not conjecture or presumption. Case-Laws VAT and Sales Tax Tue, 05 Jan 2010 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=164557